Why English Majors Should Become Certified Financial Planners AND How to Pull it Off
By AJ Ayers, CFP®, EA, CEP
Part 1: Why English Majors Should Become Financial Planners
First of all, what is a CFP®?
Let’s begin with the CFP® board’s definition: “CFP® professionals take a holistic, personalized approach to bring all the pieces of your financial life together. As part of the CFP® certification, CFP® professionals also have made a commitment to CFP® Board to act as a fiduciary when providing financial advice to a client. This means they have agreed to put your best interests first, so they can provide you confidence today and a secure tomorrow.”
I like this definition: A CFP® is someone who knows a shitload about the way money works and uses their interpersonal skills to actually help people achieve financial security and maybe even vast wealth.
In reality, a CFP® is typically an individual who has some experience in the financial services industry, usually as an accountant or investment manager who decides that their passion in life is not managing billions of dollars for large endowment funds. That person may be burnt out and decide that they can do better by helping individuals and have a real, measurable impact on people’s lives. I think this concept of measurable impact is why CFP®s have such high job satisfaction.
So, these finance folks take a difficult test that covers retirement, insurance, tax, cash flow, and estate planning and get experience working under an already licensed CERTIFIED FINANCIAL PLANNER™. In other words, a CFP® has a wide and deep set of knowledge that pertains directly to the money questions facing regular people like: how much house can I afford? What are the best accounts to save for my child’s education? I want to retire early, how do I do it? How do I defer taxes? How should I invest my money? Is my 401(k) okay? Should I set up a trust for my kids? – questions that a typical investment manager is going to brush off and say, “I just manage your portfolio, talk to your tax lady.”
Not all CFP®s are angels, but in an industry that is rife with insurance salespeople, consumers can rely on the conflict-free advice of a CFP that has also signed a fiduciary oath to put the client’s interests ahead of their own. Some insurance salespeople and investment managers hold themselves out as “financial planners” because they can buy some nice retirement planning software, enter a client’s details and spin up a so-called “financial plan” in order to convince clients to buy their products. The financial plan might indicate the client is going to run out of money if they don’t invest quickly in a “secure” investment vehicle. A CFP® is different, there’s a professional standard of excellence and delivering pure advice.
So, what does a financial planner do all day?
Well, we do a lot of things. Mostly, we meet with clients and help them make big life decisions. We run tax scenarios and models to help inform those decisions. And we spend a lot of time preparing for those meetings and following up with clients to make sure they have the tools they need to implement our recommendations. We know so much about our clients and we work hard to earn and maintain their trust. I can’t tell you how many times a client has told me they're expecting their first child BEFORE they tell their parents. It’s thrilling!
My Personal Journey as an Unlikely CFP®
Here's the personal essay bit which you are more than welcome to skip over :)
There’s a lot of shame when it comes to being bad with money and most of us were never given the tools to try and understand it. Most people don’t come from wealthy households. In fact, most people grow up in homes where money is a source of anxiety for the parental figures - why would a parent want to discuss their greatest source of anxiety with their children?
I’m definitely not your typical financial planner. It wasn’t until my late 20s that I had a sort of money epiphany and decided to take this leap of drastically changing careers. I had never taken an accounting or finance class. I took macroeconomics in college but didn’t learn anything about personal finance. In fact, throughout my entire education, a mix of great public schools and elite private ones, I didn’t learn a single damn thing about how to manage my money. That’s not entirely surprising in the American education system which has its foundations in a puritan society where it isn’t proper to talk about money. Also, I always loved books and hated math.
Still, I wouldn't trade my English degree for anything. This is not an essay about why you should go into something practical and lucrative- in fact, it's the opposite. I hope to introduce you to a career path that I think liberal arts students not only excel at but a path that also leads to extreme job satisfaction and life satisfaction.
I did the whole English major career path thing. I went to a small liberal arts college in New England with a cozy library and took classes on Chaucer and Shakespeare. In college, I wrote a (not very good) novella as my senior thesis. I double-majored in English and Government because I thought I wanted to be a politician if the whole book editor thing didn’t work out. Then after college, I worked in book publishing, specifically in academic book publishing. I lived the English major dream - I traveled the world going to conferences to meet really really smart academics and talk about writing books about popular music. But it wore me out. I was severely underpaid and after five years, I just got fed up and I left. After only receiving a cost of living adjustment raise for two years in a row I realized that even though I was responsible for millions of dollars of revenue for the company, I wasn’t valued. I was a disposable young woman with no power. Money isn't everything but I quickly realized that not HAVING to worry about money is truly a powerful and freeing thing. Unfortunately, I realized the only people who are able to succeed long-term in editorial work are those who have independent wealth - the salaries just aren't good enough.
To make a very long story short: I left book publishing, did a brief stint working for a wonderful independent bookstore, and then landed at a music tech company called Bandcamp, where I wrote album reviews and edited long features on up and coming bands. Bandcamp is a tech company and I LOVED the fast-paced, results-driven workplace. It was the polar opposite of stogy old book publishing. Everyone worked from home and I developed friendships with software engineers via Slack. I felt like I was finally being paid what I was worth and was rewarded for my ideas and contributions to the growth of the company. I was blown away by the money left in my checking account at the end of each month so I figured it was time to start investing it.
I didn’t really know what “investing” meant at that time. I think its important to admit that.
Sure, I had an idea of what the stock market did but I had just graduated into the Great Recession and had a certain level of skepticism when it came to money and financial services. So, I started looking around for some advice for how to invest my extra money and what to do with my stock options, and couldn’t find anyone who was speaking my language…so I started looking for answers and for simple explanations of hugely important and impenetrable money concepts. I shared what I learned on a podcast called Moneysplained, which is how I met my business partner Shane. I fell in love with the power of knowledge – knowing how this money shit worked was so invigorating. I was interviewing journalists, financial planners, tax professionals, attorneys…anyone who would talk to me. I started thinking about a career change and the same advice kept coming up: if you really want to help people with money, get your CERTIFIED FINANCIAL PLANNER™ marks. Turns out Shane was on a similar path as a refugee from the accounting world, so we decided to start Brooklyn FI, and the rest is history.
The bottom line: every CFP® I know is really happy and fulfilled. They truly LOVE being a financial planner. When I looked around at my writer and publishing friends I saw despair. That’s not to say, they are all miserable, but I just notice a better sense of community and camaraderie amongst financial planners, than I saw and I had among writers, editors, and artists. When I was an editor, both men and women were truly cruel to me. I had my character attacked, I had rejected authors write to my boss to tell him that I was an idiot and unqualified. As a financial planner, I find my friends are nothing but supportive. Money isn't everything, but not being compensated adequately for the work you do is demoralizing. The math just doesn't work. Even if you're working for a publication that pays well as a freelance writer, you can't tell me that you’re always stressed out about trading your time for money.
Sure, people who choose to work in finance can be a little square, or worse, arrogant and obnoxious and patronizing. Finance professionals are pretty bro-y. Most of them watch football and play golf. Most of them haven’t wept at the end of a Sally Rooney novel or Won Kar Wai film. And that’ is why we need more creatives with diverse backgrounds to enter the profession. So…let’s get you started.
Part II: How to Pull it Off
You'll need to get your CFP® designation. You have a lot to learn because you perhaps don't have a natural proclivity for math. You'll have to work harder than your fellow students because you didn't major in business and maybe you're terrified of Microsoft Excel.
Do not be afraid of excel and spreadsheets. You are going to put in the hours and become an Excel ninja.
You can probably pull this whole thing off in 2-3 years and it will cost anywhere from $1,000 - $10,000 depending on which paths you take and how much you can handle on your own.
I truly believe that you can accomplish this WHILE doing other things like having a day job. Yes, it will be hard and you will have to spend at least 10 hours a week for something like 1-3 years doing something that doesn’t come naturally to you, but if you end up loving it, I believe you will become truly happy.
Tip: Use that English degree and writing and research skills to apply for the MANY scholarships out there.
Step 1: Take online Excel classes
Time commitment: 5-20 hours
Cost: Free or $50-$200
You need to get comfortable with excel and you can't let it intimidate you. You need to do this now because it's a great life skill. Put in the hours early and you'll feel the great benefits later on.
Lynda.com (which is now rebranded as LinkedIn Learning) has amazing courses and if you're a member of your local public library you can get free access (I know this is true of the Brooklyn Public library).
Here are some other Excel courses:
Again, do not be intimidated. You need to put in the hours! Start with JUST one hour a week for two months and I promise your life will improve. I wish I had been taught Excel in high school math classes, not geometry.
Step 2: Enroll in a CFP education course
Time commitment: 3-8 hours a week for 6-12 months
Cost: $4,000 - $6,000
This is the big-time commitment. You’ll need to study the rules and laws and nitty gritty stuff. The good news is that the CFP® designation is a practical one. Sure, you might have to spend a few hours memorizing the names and details of outdated pensions, but I’d say 80% of the stuff in this curriculum is relevant to your own financial life. You’ll learn all about investing, taxes, estate planning, and how all of that comes together to build a solid financial plan.
You’ll take 6 courses in the six areas of financial planning and a capstone course where you’ll build and deliver a real-life financial plan. Seriously, you’ll learn so much! Everyone should do this education!
There are many online courses offered through universities. I did mine via NYU and loved the program.
Here is a great list of the various CFP® programs from industry leader Michael Kitces.
Step 3: Get the extra help you need
Time commitment: 5-10 hours
Cost: $0-$1,000
If you're struggling, get help. No one wants to admit they are bad at math or that a concept just isn't sinking in. ASK for help. I’m not afraid to admit that I struggled with some of the complex math parts of learning to be a financial planner. But this is a skill that can be taught – and there are great tutors out there who can help you.
It's also important to immerse yourself in the industry.
Like reading? Try these:
In my opinion, Michael Kitces is the exalted leader of the financial planner space – read everything he puts out on his blog. Kitces
Buy this book: So You Want to Be a Financial Planner
Like podcasts? Try these:
Financial Advisor Success Podcast
The Liquidity Event - Yes, I’m going to plug my own!
Step 4: Test Preparation and Taking the CFP Exam
Time commitment: 75+ hours
Cost: $1,500-$3,000
The CFP exam is a beast of a test. It not only requires mastery of the subject but also stamina.
The exam is only offered in March, July, and November of each year so plan accordingly.
You should probably study for at least 5 hours a week for the two months leading up to it and AT LEAST 20 hours per week for the two weeks leading up to it.
There is a lot of material that isn’t just memorizing - you need to show mastery of a well-rounded financial education so I believe that a review course is important.
I used Brett Danko’s live review course - I went in person in New Jersey. I HIGHLY recommend Brett and his team members. I would not have passed the exam without him.
Step 5: Get Hired As an Intern or Associate to Gain Experience at an Established Firm
Resources to find an entry-level job:
You’ll need to start at the bottom of the food chain. You’ll learn how so much of financial planning and investing is just about filling paperwork. You will do data entry. You will hopefully get exposure to how a financial planner delivers advice to a client. You will laugh, you will cry, you will get caught off guard. You will learn a lot.
So! English majors! Philosophy majors! Environmental Science majors! This post is directed at you!
Once you get your CFP® marks email me :) We’d love to have you here at Brooklyn FI.
-AJ